HBOS Reading: Independent Review

Chris Elmore Excerpts

Tuesday 18th December 2018 Westminster Hall

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I beg to move,

That this House has considered the independent review of HBOS Reading.

It is a pleasure to serve under your chairmanship, Sir Christopher. There are some fundamental business principles that underpin any free market economy: we compete on a fair and level playing field; we all have a fair, fighting chance of success; we all play by the same rules; and our regulations and the rule of law ensure, where injustices occur, that justice is done and is seen to be done.

Many people in the Public Gallery today no longer believe in those principles. They have been subject to scandalous, criminal fraud perpetrated by senior bank managers at Lloyds and HBOS. They have had to suffer further scandal at the hands of those at the highest level in the bank who, when made aware of the fraud, instead of holding their hands up to what had gone wrong, denied any wrongdoing for 10 years. Indeed, there is clear and compelling evidence that the most senior management sought to cover up the fraud, suppressed evidence, and used the HBOS review process, which is supposedly there to compensate the victims, to minimise payments and perpetuate the cover-up. Incredibly, our system—our regulators—stood by and allowed the fraud against the victims to continue.

[Chris Elmore (Ogmore) (Lab)]

The hon. Gentleman knows my view of him. He does an enormous amount of work on these issues, and I pay tribute to him for all that work. He will be aware of my constituent, Mr Alun Richards, whose business went under through the Lloyds Banking Group. He has mentioned public bodies, including the Royal Institution of Chartered Surveyors, the Solicitors Regulation Authority and the Serious Fraud Office, turning a blind eye. He and I have been working for a number of years to try to get those organisations to deal with these complaints. Millions and millions of pounds have gone missing. Does the hon. Gentleman agree that there is a need for a fundamental review, led by the Treasury, of how we can get a better banking system that works for customers and is a lot more ethical about how it conducts its business practices?

[Kevin Hollinrake]

I do agree. The sector is so far away from the banking sector that we need that fundamental reform is needed not only in the regulatory process, but in the mechanisms that enable victims to hold the banks to account, which I will come on to soon.